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Santander Consumer USA files Form 10-K, restates previous financials

SantanderConsumer USA Holdings Inc. on March 31 filed its annual report onForm 10-K for the fiscal year ended Dec. 31, 2015.

The company had received a with the NYSE's continued listing requirements.

Santander Consumer USA Holdingsrevised its methodology for estimating credit loss allowance on individuallyacquired retail installment contracts and restated prior periods, which are notmaterially different than its reported results on an annual basis, the companysaid.

For full year 2015, net incomedecreased to $827 million, or $2.31 per common share, from $866 million, or$2.41 per common share, as previously reported, driven by the correction of anoverstatement of the allowance at the beginning of the year. Additionally,year-end credit loss allowance increased $7 million, or less than 1%; year-endstockholders' equity decreased $17 million, or less than 1%; and net charge-offratio remains unchanged.

For the quarter ended Dec. 31,2015, net income decreased to $12 million, or 3 cents per common share, from$68 million, or 19 cents per common share, as previously reported, driven bythe correction of an overstatement in the allowance as of the beginning of thequarter. Quarter-end credit loss allowance increased $7 million, or less than1%; quarter-end stockholders' equity decreased $17 million, or less than 1%;and net charge-off ratio remains unchanged.

For the year ended Dec. 31, 2014,net income decreased to restated $724 million, or $2.04 per common share, fromreported $766 million,or $2.15 per common share. Year-end credit loss allowance decreased by $57million, or 2%; the allowance ratio decreased 20 basis points to 11.3%;year-end stockholders' equity increased by $35 million, or 1%; and netcharge-off ratio remains unchanged.

For the year ended Dec. 31, 2013,net income increased to restated $709 million, or $2.05 per common share, fromreported $696 million, or $2.01 per common share. Year-end credit lossallowance decreased by $122 million, or 6%; the allowance ratio decreased 60basis points to 9.7%; year-end stockholders' equity increased by $77 million,or 3%; and net charge-off ratio remains unchanged.

Santander Consumer USA hasdetermined it is not required to refile any of its previously filed financialstatements.

In connection with this change inmethodology and the resulting immaterial restatements, SantanderConsumer USA said it has identified and disclosedseveral material weaknesses in internal controls over financial reportingprimarily related to the estimate for credit loss allowance. The company'smanagement is currently working on plans to remediate these material weaknesses.